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The Gross Domestic Product is used to compare countries or to determine if a country is headed for economic turmoil. The debt-to-GDP ratio is a way to measure a country's debt. It is also an easy way to compare a country's economic output (measured by gross domestic production) with its debt levels. The debt-to-GDP ratio is a way to measure a country's debt. To find the ratio, divide the country's debt by its GDP. If a country has a high ratio, or higher than 100%, it means that it is not producing enough to pay off its debt. A ratio of 100% indicates that there is enough production to pay off the debt, while a lower ratio means that there is not enough economic output to pay off the debt.

References

Trading Economics. (2022). Country List Government Debt to GDP | Europe. Retrieved September 17, 2022, from https://tradingeconomics.com/country-list/government-debt-to-gdp?continent=europe

Debt-to-GDP Ratio. (2022, April 6). The Balance. Retrieved September 17, 2022, from https://www.thebalancemoney.com/debt-to-gdp-ratio-how-to-calculate-and-use-it-3305832